Eternity Law International News Andorra rejects banking secrecy since 2018

Andorra rejects banking secrecy since 2018

Published:
June 11, 2021
Share it:

For many years, banking secrecy was observed in Andorra, there was no VAT with income tax, high-class professional workers worked in the banking area. In Andorra, there was a certain kind and independence in making decisions.

France and Spain are located near Andorra, which is an important advantage for this state.

In the last couple of years, the situation in the country has changed significantly. Andorra has undergone a lot of the demands of the world order. First of all, the threats and demands from the European Union played a role.

And because of this, Andorra began to make concessions to the international community. The first step towards such concessions was the creation of a taxation framework, it introduced ten percent taxation on the income of legal entities and individuals, and 4.5% VAT appeared in Andorra.

But, in general, the country has excellent chances for a significant reduction in tax rates.

Banking secrecy in Andorra

At first, the state agreed to exchange data on bank depositors of the EU countries. This immediately reduced the number of investors from European countries.

To date, the state has not only left its signature on the pages of a multilateral agreement on the exchange of banking information. The country plans to start sharing this information.

Starting in 2018, she plans to collect and forward information about those investors who have more than one million USD in their personal accounts.

It is planned that from 2019, in Andorra, such a concept as “Bank secrecy” will cease to exist. One more state will be included in the list of the state with “total transparency” – albeit regarding the issues of bank depositors.

Andorra is now entering a new stage of its development. Traditional means of attracting customers are already not working enough – moreover, they are in little demand and even quite risky.

New techniques are only at the stage of formation. Andorra may well find its application as a country not only for the preservation of banking assets, but also as a tax residence for individuals.

Features of the legislation when registering a company in Andorra

It is easy to register a company in Andorra. In the summer of 2017, legislation came into force in Andorra, which provides for criminal liability for tax violations.

In case of evasion in the amount of 80-160 thousand euros, the offender can be imprisoned from three months to three years. He also undertakes to pay a fine.

If a person has not only evaded paying taxes, there are other state crimes for him, for example, he “laundered” illegal money, then the prison term can be extended by five years, and the amount of the fine will be increased.

Banking secrecy is an outdated concept. New rules also dictated new requirements. For a minimal offense, the severity of punishment increases. So why provoke a provocation of a system that was launched to collect taxes and fines?

Eternity Law International has extensive practical experience, understands the situation well, so with us you have an individualized high-quality service that will help you solve your own problems and tasks.

You can seek advice and services from our experts.

Table of contents

You could be interested

Crypto License in Portugal

Holding a crypto license in Portugal means developing a legally-regulated basis for conducting cryptocurrency services within the European model.  Portugal has developed one of the most flexible regimes for virtual currencies, now aligned with the new EU MiCA regulation, which replaces the former VASP registration framework. Legislative Basis for CASP License in Portugal and Transition...

Which Gambling License Should You Choose: Anjouan, Nevis, Curaçao, Tobique, or Kahnawake?

Nowadays, it is of high importance for organizations which provide iGaming services to have an online gambling license. It determines legal standing, trust with players, access to diverse territories, and limits operational risk. In case one chooses the wrong location to do it, encountering slow development, restriction of partnerships, or damage to reputation is inevitable. ...

SPI license in Lithuania

Process of getting a permit to conduct business-activities in payment-field is characterized by a highly-complex organizational and legal structure. Successful completion is based on a clearly-understanding of formally-set norms, rules and conditions for getting relevant SPI-license, and knowledge of case-law of chosen jurisdiction. Here, we consider features and characteristics of Lithuania. For non-banking local establishments,...

Investment license in Czech Republic

Due to its stable political and economic environment, investing in the Czech Republic has become an attractive option for many foreign investors. The Czech Republic has a highly skilled and educated workforce, a strategic location in the heart of Europe and an open and welcoming attitude to non-citizen investment. To encourage investing, the Czech Republic...

PSP license in Argentina

Advanced innovation has had a huge effect on how electronic payments work in Argentina. The main reason for this big change is because of the Payment Service Providers (PSPs). They are very important in how money is exchanged in the country. In order to thrive and achieve success in this evolving landscape, acquiring a PSP...

How to get a Certificate of Incorporation

Company registration is one of the first and most important steps towards creating a successful business. This process requires attention, preparation and understanding of legal nuances. A company registration certificate is an official document confirming the establishment of a legal entity and its right to operate. In this article, we will discuss what a company...

Related posts

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Fill the blank: